Let’s start today’s intraday charts update by revisiting yesterday’s channel setup for on NZD/USD. And as y’all can see, the pair went lower by about 140 pips, so congratulations to those of ya who were gangsta enough for a counter-trend play. But for the more conservative forex traders out there who refrained from jumping in, just know that the pair is currently testing the channel’s support area. You may therefore wanna start looking for opportunities to go long. And all the more so, since stochastic is already signaling overbought conditions. The momentum of the current bearish downswing seems kinda strong, though. You may therefore want to keep a close eye on the closest area of interest at 0.7170. If the pair blows through that with ease, then you may wanna avoid going long or close your longs (or even go short), since that may be the start of a trend change.
Next, GBP/USD has been moving higher recently. However, it got violently rejected on two separate occasions when it tried to move past the 1.2540 handle. The bulls seem determined, though, since the pair has been forming higher lows or troughs. And if we connect the two peaks and the troughs, we get what appears to be an ascending triangle. An ascending triangle is a bullish chart pattern, so our main directional bias is to the upside. And if a breakout does occur, then the pair could potentially move higher for about 190 pips. Of course, there’s always a chance that the pair may break to the downside instead, so you may wanna prepare for such a scenario as well. And as always, make sure to practice proper risk management, alright?
Finally, we’ve got trend line break for NZD/CAD. To be more specific, NZD/CAD has recently broken a rising trend line that has been respected since early October. The pair may move even lower, but there’s also a chance that the downside breakout may get faded instead, since the 0.9680 handle, which is a price area with significant market interest is close by. But if the pair manages to smash lower past that, then the bears will likely be gunning for the 0.9580 handle, which is another major price area, whose significance can even be seen on the higher time frames. Just switch to the daily and weekly time frames, and you’ll see.
Forex Chart Settings:
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.